By Mark Seavy  

Following restructuring, several film studios are sharpening their focus on content and creating new opportunities for brand licensing.  

While these reorganizations will likely take several months to settle in, theatrical films and streaming services are expected to emerge as major beneficiaries following their separation from legacy linear TV businesses. 

Warner Bros. Discovery, for example, is splitting into two divisions, including streaming/studios and linear TV. The change is expected to further bolster content and comes as the Harry Potter franchise readies  a streaming series for 2026 and the DC Universe embarks on a 10-year branding strategy with the release of new Superman (July 11) and Supergirl (2026) films.  

Lionsgate, meanwhile, is separating its studios operations (which produces 30 to 40 films annually, including about a dozen for wide theatrical release) from Starz, which had 20 million subscribers in the U.S. and Canada as of December 31, 2024, and has franchises like Outlander and Power.  

“With the growth in streaming they must adapt to what the market is now, and these separations will give the consumer products groups additional leverage to get more licensed product out. It will be supported and won’t be as much of a guess as to whether the content will air,” a licensee executive said. “These decisions will make things a lot easier, and you won’t need as much a crystal ball [in deciding which content makes sense for licensing].” 

Beyond those reorganizations, there has also been further consolidation. Paramount and Skydance Media await the completion of a Federal Communications Commission (FCC) review of their proposed merger, which was expected to be completed by July. And Disney purchased the remainder of Hulu that it didn’t already own from Comcast. 

Licensees we polled do not expect significant changes in brand licensing programs in the near term. But there are some indications that new strategies are emerging.  

Warner Bros., for example, has a new style guide and licensing plan for the upcoming Harry Potter streaming series for HBO Max, the contents of which were first disclosed at Licensing Expo in May, licensing executives said. And Warner Bros. Games, which develops titles based on several film franchises, is being restructured so that the group in Montreal, Canada handles the Harry Potter and Game of Thrones properties, while Chicago, IL-based NetherRealm Studios oversees the DC Universe and Mortal Kombat. 

“What we have now is a powerful combination of a differentiated, profitable global streaming service with a world-class studio business,” said David Zaslav, CEO at Warner Bros. Discovery, whose Max streaming service is forecast to have 150 million subscribers by year-end. “For us, Superman, Batman, DC, Harry Potter, Lord of the Rings, and Game of Thrones are the core equivalents of the NFL. We own those assets and can build out those worlds like we did with Harry Potter for 10 consecutive years.” 

Following these restructurings, an emphasis on streaming will be crucial. A recent Nielson report showed that, in May, streaming overtook broadcast and cable viewership combined for the first time. Time spent on streaming accounted for 44.8% of total TV viewing, while cable made up 24.1% and broadcast was 20.1%, according to Nielsen.  

This shift in viewing habits is occurring as Netflix flips the script by entering the live TV business. The streaming service signed a deal with France’s TF1 to allow customers to watch live feeds from the TV networks’ channels and stream shows on demand starting next summer. Netflix has also been delivering live events in the U.S., including with World Wrestling Entertainment (WWE) and the National Football League games on Christmas Day. 

“Everything is moving to streaming and everything is moving to on-demand,” Netflix Co-CEO Greg Peters told Bloomberg earlier this year. “There is going to be a period of shakeout and transition associated with that.”